The situation further amplifies how disgraceful the situation is:
Current market cap $644m (assumes 28c share price and 2.3b shares on issue)
NTA as at 31/12/10: $943M
Value of Aust portfolio as at 31/12/10: $1.64b (31 Dec 10) Source: Page 19 HY Presentation
Weighted avg cap rate 31/12/10: 7.52% Source: Page 19 HY Presentation
Therefore NOI is: $123M
Diff between NTA and current valuation: $299M
Therefore, if the portfolio were liquidated and we were only to realise the current valuation of $644m (28c per share),
the portfolio would be liquidated at $1.34b, a discount of 18.3%,
and a cap rate of: NOI $123M/Prop Value $1.34b = 9.2%!!
The market is currently valuing our portfolio at a cap rate of 9.2% alongside a gearing of 40%.
WRT's weighted avg cap rate is only 6%!
Mind you, NTA should be higher for 30 June 10 as the cap rates on the Aust portfolio should have levelled off at 7.5%, which means the value of the portfolio should increase by the increase in NOI during this period. A 4% increase for the full year equates to a 2% HY increase, so Aust portfolio should have increased by $1.64b x 2% = 33c or 1.5c NTA
Not sure if you have visited the website but the more numbers on there the better.
Cheers
CER Price at posting:
28.5¢ Sentiment: Buy Disclosure: Held
